The worst natural disasters in the US have caused billions in economic losses. Find out which of these catastrophes cost the insurance industry the most
The US has endured many natural calamities over the years, the destructive effects of which have been felt across the country. With climate change in full swing, the risk of even more devastating catastrophes has since increased.
In this article, Insurance Business ranks the 10 worst natural disasters to hit the nation based on insured losses. The goal is to give you a picture of how much impact these calamities have had on the insurance sector.
The list is arranged by inflation-adjusted figures to show how much the damage would have been worth today. Here are the worst natural disasters in US history that have caused the biggest losses in industry.
Major US natural disasters: top 10 by insured losses
The 10 worst natural disasters in the country have resulted in a combined $324.1 billion in estimated insured property losses. This is according to data compiled by the Insurance Information Institute (Triple-I) from consulting giant Aon’s latest annual catastrophe report. Inflation-adjusted, the total reached $442.7 billion.
The figures below include losses sustained by private insurers and government-sponsored programs such as the National Flood Insurance Program (NFIP). The numbers were inflation-adjusted using the US Consumer Price Index (CPI).
Data for economic losses, meanwhile, came from the National Oceanic and Atmospheric Administration (NOAA). The figures were also adjusted to account for inflation.
1. Hurricane Katrina
Year: 2005
Location: Gulf Coast
Estimated insured property losses: $65 billion
Inflation-adjusted insured property losses: $101.9 billion
Estimated economic losses: $197.5 billion
Deaths: 1,800+